People ex rel. Manice v. Powell et al.
New York Court of Appeals
201 N.Y. 194 (1911)
- Written by Haley Gintis, JD
Facts
William Manice (plaintiff) was elected to the Atlantic Terra Cotta Company’s (defendant) board of directors. The term for which Manice was elected was not set to expire until January 1912. However, in May 1910, the other directors on the board motioned to remove Manice on the ground that sufficient cause existed for his removal. The sufficient cause on which Manice’s removal was based was his opposition to create new officer positions within the company. The shareholders voted to approve the motion to remove Manice. A new director was then elected to replace Manice. In response, Manice filed a peremptory mandamus with the special term court to vacate the removal decision and be reinstated as a director. The special term court justice denied Manice’s motion on the ground that a director serves as an agent of the corporation and that Manice did not have the authority to demand that the shareholders reinstate him in his director role. The matter was appealed to the New York Court of Appeals.
Rule of Law
Issue
Holding and Reasoning (Chase, J.)
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